The autumn of 1724 was spent at Carmarthen. In February, 1725, Steele was at Hereford, where he received £100 from the King's bounty; and in July he was again at Carmarthen. He retired to the country from "a principle of doing justice to his creditors," and not, as Swift said after his death, because of the "perils of a hundred gaols." In December, 1724, the other managers urged him to return to town at once; the audiences decreased daily, and it was impossible to contend against other forms of entertainment; the profits had fallen by more than a half. Nothing came of this application, and in September, 1725, protracted law proceedings were instituted in the Court of Chancery, by Steele and Scurlock, against Wilks, Cibber, Booth, Castleman, and Woolley. An abstract of the pleadings will be found in the Appendix. The Court gave judgment in February, 1728, confirming the allowance of £1 13s. 4d. a day to each of the three managers; but the case was not brought to a close until July, when, as Cibber says, "Sir Richard not being advised to appeal to the Lord Chancellor, both parties paid their own costs, and thought it their mutual interest to let this be the last of their law suits." During the remaining three years of his life Steele lived chiefly at Tygwyn, a farm-house overlooking the Towy, and within sight of Carmarthen. There he had a stroke of paralysis, which was accompanied by a partial loss of speech, but he kept his sweetness of temper and kindliness towards others to the last. There is a pleasant anecdote, told by Victor, and fully confirmed elsewhere, that he "would often be carried out on a summer's evening, where the country lads and lasses were assembled at their rural sports, and, with his pencil, give an order on his agent, the mercer, for a new gown to the best dancer." By his will, made in 1727, and witnessed by John Dyer, the poet, he left the residue of his small property, after certain legacies, to his "dear and well-beloved daughters, Elizabeth and Mary." Elizabeth, who had many admirers, afterwards married Lord Trevor; Mary died shortly after her father. Before his death Steele was moved to a house in King Street, Carmarthen, where he passed away on September 1, 1729. On the 4th he was privately buried in the vault of the Scurlocks, in St. Peter's Church. This vault was accidentally opened in 1876, and Steele's remains exposed to view; but they were carefully re-interred, and the skull enclosed in a small lead coffin.